Electromac announced a worldwide recall of every BigKen smartphone sold before September 2021 because of reported dangerous faults that make them explode in the hands of its users.
Consumer protection legislation requires that goods and services sold must be?
Select ONE answer:
- guaranteed for life
- produced under Fair Trade agreements
- taxed by the government
- fit for their intended purpose
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct – Most goods or services cannot be guaranteed for life, as over time goods will wear out and/or become obsolete.
- Not correct – Fair Trade agreements are concerned with the rights of the supplier and not the consumer.
- Not correct – While many goods are taxed, this is decided by separate government legislation and not by consumer protection legislation.
- Correct – Consumer protection legislation is designed to give consumers rights if goods purchased do not meet certain requirements. As a result manufacturers such as Electromac must provide goods that are fit for purpose for example not having dangerous faults. When products are not fit for purpose, such as the BigKen, consumers are legally protected and manufacturers must take remedial measures such as recall/replacement/refund.
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